Dividend-News

Corning's Dividend Is Safe

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  Published Mon, 13 Jun 2011 18:12:04 GMT on The Motley Fool
  

  
  

  Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than one means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share. The EPS payout ratio measures the percentage of earnings that go toward paying the dividend. A ratio greater than 80% is worrisome. The FCF payout ratio, or dividends per share divided by free cash flow per share. Earnings alone don't always paint a complete picture of a business's health. The FCF payout ratio measures the percent of free cash flow devoted toward paying the dividend. Again, a ratio greater 80% could be a red flag. Let's examine Corning (NYSE: GLW) and three of its peers.... Read more
  

  Stock name									ISIN	Last trade		P/E	Earnings/Share	Dividend/Share	Dividend yield
  CORNING									US2193501051	16.14		13.1	1.18	0.40	2.48
  3M									US88579Y1010	111.39		17.5	6.33	2.54	2.28
  HONEYWELL INTERNATIONAL									US4385161066	80.75		20.4	3.87	1.64	2.03
  TYCO ELECTRONICS									CH0102993182	45.99		16.0	2.84	0.84	1.83

  
  

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